Musk says potential SpaceX-Tesla merger ‘good idea’ as companies form deal committees

American entrepreneur Elon Musk said Tuesday that combining electric vehicle manufacturer Tesla and aerospace company SpaceX would be “a good idea,” disclosing that both companies had established special committees to examine a potential merger.

“I think it would be a good idea, but it’s really up to the special committees of both companies,” Musk said, explaining that conflicts of interest prevent him from participating directly in the independent review process.

The companies initiated the evaluation following requests from shareholders, Musk said, with the committees retaining final authority to approve or reject any potential transaction.

“I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity,” Musk said, arguing that unified operations would accelerate shared work on advanced artificial intelligence software, semiconductor architecture, robotics and orbital logistics.

Musk cautioned, however, that it was premature to assume a merger would take place, emphasizing that the committees had not agreed on transaction terms and might never reach a deal.